You may need finances throughout your life for a variety of reasons — whether it's planning your wedding, investing in a business idea you believe in, or even medical needs for a loved one. Here, your land and property act as great assets and collateral that can be used to obtain loans. Because title loans are a type of secured loan, not only are the interest rates lower, but you have a better chance of being approved. The PAP program is also known as a loan against property, where several factors such as the term of the loan, credit rating, property type, and your profile as an applicant determine the PAP rate. But what exactly is a home equity loan? How do you check your loan for property eligibility? What is the loan against the property, and the documents required to secure the same? We cover all of this and more on this blog.
As the name suggests, a home loan is a secured loan made by pledging your own property (residential or commercial) to a lender. Read on to learn more about these loans, which have become a popular financing option for many because of their many benefits.
Key features of the Loan Against property:
- You can take out a real estate loan (LAP) not only for residential or commercial real estate but also for land.
- Some lenders will allow you to obtain a PAP without proof of income and an SPT, but you must identify your source of income and explain why you do not have the required documents.
- A high average monthly balance in your savings account benefits you because it shows lenders that you have good financial habits.
- Adding co-applicants to your PAP gives you a better chance of increasing the maximum loan amount you can take.
- Another way to get a PAP without Proof of Income and ITR is to choose a loan value that is lower than the property value.
Simplified Approval Process
Ease of approval is one of the important benefits among many other home loan benefits. Getting a home equity loan is much easier than taking out an unsecured personal loan. The only thing you need to make sure of is that the property is free of mortgage disputes.
Getting your LAP will be much easier and faster if you have all the important documents. A quick check of PAP documents.
KYC i.e. Proof of Age and Address
- income document
- ownership documents.
- Bank statements for the last six months.
- A check for handling fees.
- Other documents which may be different for each FI.
Shubham Housing Finance Limited offers the best loan against property solutions to those who want to get financial support
